This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Federalism and Economic Regulation
The ebb and flow of national and state power Origins of American Federalism "division of power between national and
sub-national units of government" Concerns about political power Compromise between unitary and
confederal system Practical necessity in 1787 states insisted upon a prominent place in system Early Experience:
Hamilton's economic program--1790s Protective tariff Assumption of Revolutionary War debts of states Internal Improvements **Creation of a national bank McCulloch v. Maryland (1819)
[Text, page 184; Reader, pp. 63-66] Can Congress charter a Bank?
YES Implied within the Necessary & Proper Clause Article I, Section 8 Can a state tax the Bank? intergovernmental tax immunity NO National Supremacy & Implied Powers Marshall's most comprehensive ruling Evolving Eras of American Federalism Nationalist view McCulloch v. Md. & Marshall Court States' Rights view pre Civil War Dual Federalism 1850s-1937 New Deal and national authority Cooperative federalism 1960s Fiscal Federalism & revenue-sharingearly'70s Reagan Revolution devolution of power 1980s Rehnquist Court more limited federal power 1990s Roberts Court conflict & continuity in 21st century States' Rights Doctrine Emerged during early 1800's - Lingering questions about Union- Missouri Compromise Calhoun and doctrine of nullification Dual Federalism--Taney Court and aftermath 1860 Election--Lincoln -- 40% popular vote Secession and War--1861- 65 Reconstruction and Eco. Development Due Process and Commerce Clause Development Post Civil War--rapid economic development "laissez-faire" economics anti-regulation "substantive due process" property rights for corps. Problems -Rise of monopolies Excessive working hours Unsafe working conditions Anti-labor practices Interstate Commerce Act--1887 Sherman Antitrust Act--1890 Case Law: Economic Development U. S. v. E. C. Knight (1895) Can this Sugar Trust be suppressed under the
Sherman Antitrust Act? NO CJ Fuller-- "manufacturing is not commerce" emergence of "direct-indirect effects" doctrine Lochner v. New York (1905) Does state law violate Due Process? YES Violates "freedom of contract" Justice Holmes' dissent-- "laissez-faire" is outmoded National Power and the Great Depression
Schechter Poultry Co. v. U. S. (1935) Constitutionality of NIRA--1933 Illegal delegation of legislative authority? Federal commerce authority? YES NO Presidential Election of 1936: FDR--61% Plan to reorganize judiciary [Brief 4.2, page 98] Court endorsed the New Deal New Deal Approval by Supreme Court West Coast Hotel v. Parrish (1937)
Is state law requiring minimum wage unconstitutional? NO (5-4) "Freedom of contract" not part of 14th Amend. Substantive Due Process declines States can regulate economic matters for
citizens N.L.R.B. v. Jones & Laughlin (1937) Can Congress regulate labor-management
relations? YES CJ Hughes (5-4) Congress has power "to foster, protect, control, and restrain..." interstate commerce Labor strife may affect interstate commerce Upheld constitutionality of National Labor Relations Act (1935) Dissent of four "free-market" justices United States v. Darby (1941)
Fair Labor Standards Act 1938 Can Congress prohibit interstate commerce in products
made under sub-standard wages and hrs.? YES (9-0) Can Congress prohibit of employment of labor made
under sub-standard wages, conditions, & hours? Overruled Hammer v. Dagenhart (1918) Ended support for dual federalism YES Heart of Atlanta Motel v. U.S. (1964)
[Reader, pp. 66-68] Can Congress prohibit racial discrimination under its commerce power ? YES Clark (9-0) Upheld Title II of Civil Rights Act of 1964 Aggressive use of federal commerce authority to prohibit
racial discrimination Justice Tom Clark: "...overwhelming evidence of the
disruptive effect that racial discrimination has had on commercial intercourse." ...
View Full Document